Frontline (FRO)
NYSE:FRO
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Frontline
(NYSE:FRO)
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Rating:68Neutral
Price Target:
$35.00
▼(-3.18% Downside)
Action:ReiteratedDate:03/01/26
The score is led by solid financial performance (strong profitability but constrained by elevated leverage and volatile free cash flow) and a very positive earnings outlook with strong forward booking visibility and liquidity. Technicals support the trend but are overextended (high RSI/Stoch), while valuation and dividend yield provide only moderate support given cyclicality.
Positive Factors
Forward booking visibility
High forward coverage across VLCC, Suezmax and LR2 materially reduces near‑term spot exposure and provides durable revenue and cash‑flow visibility. This supports planning for debt servicing, capex and dividends and cushions earnings against short‑term rate swings for several quarters.
Negative Factors
Elevated leverage
Consistently elevated leverage leaves limited headroom if rates or utilization fall. Intent to finance newbuilds with meaningful debt increases refinancing and interest exposure, which can amplify downside in weaker markets and constrain strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Forward booking visibility
High forward coverage across VLCC, Suezmax and LR2 materially reduces near‑term spot exposure and provides durable revenue and cash‑flow visibility. This supports planning for debt servicing, capex and dividends and cushions earnings against short‑term rate swings for several quarters.
Read all positive factors
Frontline (FRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.05B
Dividend Yield4.32%
Average Volume (3M)4.78M
Price to Earnings (P/E)12.8
Beta (1Y)0.83
Revenue Growth-13.41%
EPS Growth-60.18%
CountryUS
Employees85
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.02
Shares Outstanding222,622,900
10 Day Avg. Volume3,401,674
30 Day Avg. Volume4,778,537
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.93
Price to Sales (P/S)2.47
P/FCF Ratio7.25
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue5.53
Enterprise Value/Gross Profit16.87
Enterprise Value/Ebitda11.48
Forecast
1Y Price Target
$27.38Price Target Upside-24.26% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)5.75
Revenue Forecast (FY)$1.93B
Frontline Business Overview & Revenue Model
Company Description
Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2021, the company operated a fleet of 70 vessels. It is also invol...
How the Company Makes Money
Frontline primarily makes money by chartering its oil tankers to customers and earning freight revenue tied to the use of its vessels. Key revenue streams include (1) spot/market-based charters, where revenue is earned per voyage or per day at pre...
Frontline Key Performance Indicators (KPIs)
Any
Spot Time Charter Equivalent By Carrier
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Data provided by:
The Fly
The FlyFrontline Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a strongly constructive near‑term outlook driven by materially higher TCE earnings, robust booking coverage into 2026, active fleet renewal, large cash generation potential and strong liquidity. Management acknowledged meaningful risks — pronounced volatility driven by index/FFA dynamics, seasonality (a likely summer dip), accelerating order books for 2029+, and ongoing geopolitical/sanctions uncertainty — but framed these as manageable relative to the current favorable supply‑demand setup and Frontline's strategic positioning.Positive Updates
Strong Quarterly and Adjusted Profit
Reported profit of $228,000,000 ( $1.20 per share ) for the period and adjusted profit of $30,000,000 ( $1.03 per share ). Management noted adjusted profit increased by $188,000,000 quarter-over-quarter, driven primarily by higher TCE earnings.
Negative Updates
Extreme Market Volatility and Index‑Driven Moves
Management emphasized 'almost violent' market moves driven by strong use of indices and freight derivatives. Heavy reliance on a thin set of physical fixtures to set large amounts of paper exposure has increased short‑term volatility and creates sudden pricing dislocations.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Adjusted Profit
Reported profit of $228,000,000 ( $1.20 per share ) for the period and adjusted profit of $30,000,000 ( $1.03 per share ). Management noted adjusted profit increased by $188,000,000 quarter-over-quarter, driven primarily by higher TCE earnings.
Read all positive updates
Company Guidance
Management guidance highlighted strong near-term rate visibility and cash generation: Q4 2025 TCEs were reported at $7,074,200/day (VLCC), $53,800/day (Suezmax) and $33,500/day (LR2/Aframax), and 2026 bookings to date cover 92% of VLCC days at $107,100/day, 83% of Suezmax days at $76,700/day and 67% of LR2/Aframax days at $62,400/day; the company reported 2025 profit of $228.0M ($1.20/share) and adjusted profit of $30.0M ($1.03/share), with TCE earnings up to $424.5M from $248.0M the prior quarter and a $7.1M reduction in ship operating expenses. Balance-sheet and fleet actions include “strong liquidity” (cash/equivalents including undrawn revolver and marketable securities), no meaningful debt maturities until 2030, sale of eight first‑generation eco VLCCs for $831.5M (net proceeds ≈ $477M), and purchase of nine latest‑generation scrubber‑fitted eco VLCC newbuilds for an aggregate price disclosed as ~$1,000,000,224 with ~25% payable in 2026 and 75% on delivery (planned ~60% long‑term debt financing). Fleet metrics: 41 VLCCs / 21 Suezmax / 18 LR2, average age 7.5 years, 100% eco vessels (57% scrubber‑fitted); estimated cash breakevens next 12 months ≈ $25,000/day (VLCC), $23,700/day (Suezmax), $23,800/day (LR2) (fleet avg ≈ $24,300/day; excl. charter ≈ $23,300/day); Q4 OpEx incl. drydock: VLCC $9,600/day, Suezmax $7,600/day, LR2 $12,400/day (Q4 fleet avg OpEx excl. drydock $7,600/day). Operational cadence: ~24,400 spot days next 12 months, 27,700 annual earnings days, and cash‑generation potential at current TCEs of $2.8B ($12.51/share, 34% cash‑flow yield) rising to $3.7B ($16.84/share) at +30% or falling to $1.8B ($8.19/share) at −30%.Frontline Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.97B | 2.05B | 1.80B | 1.43B | 749.38M |
| Gross Profit | 644.05M | 705.68M | 776.11M | 484.33M | 27.23M |
| EBITDA | 921.14M | 1.14B | 1.07B | 739.83M | 211.34M |
| Net Income | 379.08M | 495.58M | 656.41M | 475.54M | -14.96M |
Balance Sheet | |||||
| Total Assets | 5.75B | 6.22B | 5.88B | 4.78B | 4.12B |
| Cash, Cash Equivalents and Short-Term Investments | 253.41M | 417.56M | 315.75M | 490.81M | 115.51M |
| Total Debt | 3.07B | 3.75B | 3.46B | 2.37B | 2.37B |
| Total Liabilities | 3.24B | 3.88B | 3.61B | 2.51B | 2.46B |
| Stockholders Equity | 2.51B | 2.34B | 2.28B | 2.27B | 1.65B |
Cash Flow | |||||
| Free Cash Flow | 669.93M | -178.84M | -775.24M | 52.93M | -399.47M |
| Operating Cash Flow | 682.46M | 736.41M | 856.18M | 370.89M | 62.93M |
| Investing Cash Flow | 24.98M | -483.40M | -1.24B | -239.47M | -363.06M |
| Financing Cash Flow | -869.62M | -147.80M | 433.07M | 10.03M | 223.55M |
Frontline Technical Analysis
Positive
36.15
Price Trends
32.10
Positive
27.51
Positive
23.75
Positive
Market Momentum
0.96
Negative
55.93
Neutral
76.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRO, the sentiment is Positive. The current price of 36.15 is above the 20-day moving average (MA) of 33.46, above the 50-day MA of 32.10, and above the 200-day MA of 23.75, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRO.
Frontline Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.98B | 7.23 | 11.30% | 3.19% | -35.37% | -57.86% | |
81 Outperform | $2.67B | 5.26 | 18.37% | 3.72% | -20.11% | -26.44% | |
75 Outperform | $3.78B | 7.74 | 16.02% | 6.12% | -23.59% | -57.70% | |
74 Outperform | $2.96B | 9.29 | 19.30% | 6.12% | -16.45% | 23.94% | |
68 Neutral | $8.05B | 12.81 | 15.91% | 4.32% | -13.41% | -60.18% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $5.57B | 57.40 | 3.45% | 2.68% | 19.15% | 329.74% |
* Energy Sector Average
FRO
Frontline
36.15
22.71
168.95%
DHT
DHT Holdings
18.35
8.73
90.65%
GLNG
Golar LNG
54.87
20.59
60.05%
STNG
Scorpio Tankers
76.81
43.48
130.44%
TNK
Teekay Tankers
77.04
42.23
121.32%
INSW
International Seaways
76.41
47.27
162.20%
Frontline Corporate Events
Frontline Shareholders Back Board, Auditor and Expanded Capital-Raising Mandate at 2025 AGM
Dec 30, 2025
On 8 December 2025, Frontline plc held its 2025 Annual General Meeting in Limassol, Cyprus, where shareholders received the audited consolidated financial statements for the year ended 31 December 2024 and voted on a series of governance and capit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.